Tax on soft drinks and cigarettes to be increased

The UAE will impose excise tax on additional sugary and smoking products from next year in order to control the growing popularity of the unhealthy products that can cause to chronic diseases. The UAE Cabinet has approved a proposal to impose 50 per cent excise tax on products with added sugar and sweeteners, whether in the form of a beverage, liquid, concentrate, powders, extracts or any product that may be converted into a drink. While 100 per cent excise tax will be levied on electronic smoking devices – whether or not they contain nicotine or tobacco – liquids used in electronic smoking devices will also be levied the same tax.